Air Liquide (AI) Q4 2024 earnings summary

Executive summary

• 2024 was a record year with strong margin improvement, robust comparable sales growth, and major commercial wins, especially in energy transition and electronics, despite challenging macroeconomic and geopolitical conditions.

• Structural transformation initiatives, efficiency gains, and progress in ESG objectives—including a 30% reduction in lost-time accident frequency and an 11% reduction in CO2 emissions versus 2020—contributed to performance.

• Record investment decisions of €4.4 billion and a strong backlog of €4.2 billion support future growth, with leadership in low-carbon hydrogen and major projects in the US, Europe, and Asia.

• 20 acquisitions and 17 divestitures executed, focusing on strategic, margin-accretive opportunities and portfolio optimization.

• The ADVANCE plan's extra-financial indicators, including diversity and CO2 reduction, showed significant progress.

Financial highlights

• Group revenue reached €27,058m in 2024, down 2.0% as published but up 2.6% on a comparable basis; Gas & Services revenue was €25,810m (+2.7% comparable).

• Operating income recurring (OIR) was €5,391m (+6.4% as published, +10.7% comparable), with a group OIR margin of 19.9% (+150 bps) and Gas & Services OIR margin of 21.5% (+100–150 bps).

• Net profit (Group share) rose 7.4% to €3,306m; recurring net profit (excluding forex) up 11.5%.

• Earnings per share increased to €5.74 (+7.3%); proposed dividend for 2025 is €3.30 per share (+13.7%).

• Cash flow from operating activities before working capital was €6,539m (+2.9%), supporting €3.8bn–€3.6bn in CapEx and stable net debt at €9.2bn (net debt-to-equity ratio 33.2%).

Outlook and guidance

• Margin improvement ambition raised to +460 basis points over 2022–2026, with at least +200 basis points targeted for 2025–2026.

• Guidance for 2025 includes continued margin improvement, recurring net profit growth at constant exchange rates, and increased contribution from project startups and ramp-ups, expected to exceed €310 million.

• Positioned to achieve ADVANCE plan's 2025 targets: +5–6% CAGR revenue, recurring ROCE >10%, and CO2 inflection point.

• Gradual recovery expected in electronics and large industries, with steady growth in healthcare and resilience in the US and China.